Letter to Shareowners
This has been an exciting year for your Company and we have delivered a good financialand operational performance. We continued to focus on cost optimisation and productivityenhancement. It has also been satisfying to witness a steady and stable growth even whenexternal environment was volatile and largely unpredictable.
We are pleased with our performance in FY 2017 having closed the year with Profit AfterTax at ' 2710.25 Lacs. But we are looking forward to a stronger and even more excitingyear ahead. We are today more equipped and confident that our foresight is taking ustowards the right direction and long-term sustainability. With the benefits of volumegrowth from invested capital yet to reach their full potential coupled with favourabledemand-supply dynamics we believe the Company has the potential to deliver even better.
Economic Outlook and Industry
Indian economy continues to remain as an economic bright spot despite some growthmoderation during 2016-17. As per the provisional estimates released by the CentralStatistical Organization (CSO) India's Gross Domestic Product (GDP) grew by 7.1% y-o-y in2016-17 compared to 8.0% in the previous year (under the new base year 2011-12). Theinflation rate remained well under control and remained within the Reserve Bank of India(RBI) comfort level. The retail inflation rate measured by Consumer Price Index (CPI) camedown to 3.89% in March 2017 compared to 4.83% in March 2016. However Wholesale PriceIndex (WPI) rose to 5.29% in March 2017 against a decline of 1.09% in March 2016.
The lack of momentum in the global economy lacklustre demand growth in India and theliquidity crunch post demonetisation all put severe pressure on our business. Our rapidcapacity ramp-up together with smart management of raw materials helped us not just reportsales but generate significantly higher margins and free cash flows. Fiscal 2016-17remained exciting for the economy industries and country. We are encouraged by reformsincluding to the Goods and Services Tax (GST) initiatives to develop infrastructure andfocus on providing affordable housing. These are all transformative steps designed tostrengthen the country from within and unleash its full economic potential.
Your Company's Performance
The flagship company of the Gallantt Group Gallantt Metal is one of the leading steelproducer with integrated steel manufacturing capabilities in the Western India. Thecompany has established its presence with strong technological competencies. Poised tolead the market Gallantt Metal has achieved stellar growth and has maintained its winningstreak through the years. We venture for continued distinction in the industry supportedby our four core values of transparency strive for excellence dynamism and passion forlearning.
Your Company has delivered good operational performance in FY 2016-17 with relentlessfocus on cost discipline and improved productivity across all our operations that enabledus to deliver strong earnings and record cash flow. As a result your company reduced debtand strengthened its ability to withstand volatility in the tough and challengingcommodities market during the year. During 2016-17 your company have witnessedunprecedented challenges but remained steadfast to the belief to counter these challengeswith resilience. This we reflected through our strong operational performance. Ourrevenues stood at 61673.14 Lakh and EBIT at 3659.79 Lakh in the fiscal. Profit beforeTax and Profit after Tax stood at ' 3031.52 Lakh and ' 2710.25 Lakh respectively.
I am confident that we will have a more promising year ahead of us in view of thestrategies we have undertaken the gradually developing positivity in our core operativesectors. And finally I would like to thank you for the unstinted support and unwaveredconfidence in the Company.
C. P. Agrawal